How to Form an LLC in Connecticut

The filing fee to form an LLC in Connecticut is $120, paid to the Connecticut Secretary of the State. This fee covers the filing of your Certificate of Organization. Online filing is available and is the most common method of submission.

Standard processing for a Connecticut LLC takes approximately 5 to 7 business days. Online filings through the Connecticut Secretary of the State's CONCORD system tend to be processed more quickly. Expedited processing options are available for an additional fee.

Connecticut LLCs must file an annual report with the Secretary of the State. The filing fee is $80 per year. The annual report is due by the anniversary date of your LLC's formation. Failure to file the annual report can result in administrative dissolution of your LLC.

Connecticut requires every LLC to have a registered agent (called a statutory agent) with a physical address in the state. The agent can be an individual residing in Connecticut or a business entity authorized to do business there. The statutory agent is responsible for receiving service of process, official notices, and other legal correspondence.

Connecticut does not legally require LLCs to have a written operating agreement. However, the Connecticut Uniform Limited Liability Company Act recognizes the importance of operating agreements and allows members to define their own governance rules. A written operating agreement is strongly recommended to establish clear terms for management, profit distribution, and dispute resolution.

Your Connecticut LLC needs an EIN if it has more than one member, hires employees, or chooses to be taxed as a corporation. You also need an EIN to open a business bank account in most cases. The IRS provides EINs at no cost, and the online application generates your number immediately.

Connecticut's individual income tax rates range from 3% to 6.99%, and the corporate tax rate is 7.5%. A sole proprietorship has minimal setup costs but no liability protection. An LLC offers liability protection with pass-through taxation. If your Connecticut LLC earns significant income, electing S-Corp status can save on self-employment taxes. However, Connecticut imposes a 6.99% pass-through entity tax (PET) that S-Corps and LLCs can elect into for a corresponding credit, so consult a tax professional to determine the best structure.

Connecticut has a mandatory pass-through entity tax (PET) that applies to certain pass-through entities including multi-member LLCs and S-Corps. The PET is calculated at 6.99% of the entity's Connecticut-sourced income. Members receive a corresponding credit on their individual income tax returns. This mechanism was designed to help business owners work around the federal $10,000 SALT deduction cap, effectively allowing a business-level deduction for state taxes.

Yes, non-residents can form an LLC in Connecticut. There is no requirement that members or managers live in the state. However, you must designate a statutory agent with a physical address in Connecticut. Many out-of-state owners hire a professional registered agent service to satisfy this requirement and ensure they remain in compliance.